Buckle up; a crypto advertising frenzy is coming on Facebook and Instagram.
Meta is changing its hard stance on crypto ads, and, as a result, you'll see more of them across Facebook and Instagram soon. The company has relaxed some of its previous rules in a policy update, making it easy for cryptocurrency companies to advertise on their social media platforms.
Meta's New Policy on Crypto Ads
Meta, the company behind Facebook, Instagram, WhatsApp, and other brands, has made a policy update that is nothing but good news for the crypto industry. With the new policy, Meta has expanded the eligibility criteria for crypto-related companies to publish ads on both Instagram and Facebook.
The major change is that Meta will now consider 27 different licenses, up from the previous three.
"We're doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry," Meta wrote in a blog post. Here's the official list of all the licenses supported.
All a crypto company needs is one of the newly expanded regulatory licenses, and they'll be able to run their ads on both Facebook and Instagram. However, the policy change doesn't affect previously approved crypto companies.
The additional supported regulatory licenses also mean that Facebook will ditch its previous strict and ambiguous criteria that relied on different things to confirm eligibility (with seemingly different criteria applied to different companies at times).
Previously, businesses involved in the industry had to undergo several checks. They had to submit an application that included several details, including whether they are a publicly-traded company, any licenses obtained (albeit Meta accepted only three), and "other relevant public background on their business."
While the policy update is good news for the industry as a whole, it means crypto companies will easily advertise on Facebook and Instagram, two of the world's largest social media platforms, which have a far wider reach.
However, Meta is still reluctant to allow certain products and services without prior written permission. These include hardware and software for mining crypto and crypto wallets that allow users "to buy, sell, swap or stake their crypto tokens." Crypto exchanges and platforms, software apps, or products that offer crypto lending and borrowing will also require pre-approval.
Why Meta's Crypto Advertising Policy Change Is Welcome
Meta's policy change on crypto ads is welcome for two key reasons.
One, it makes it easy for crypto companies to advertise, and, secondly, it's also much more transparent. But for industry participants, what does the fundamental policy change even mean?
For one, it's a good thing since more people will have an opportunity to engage with crypto. And with more awareness, more users are likely to join the crypto industry.
But while crypto companies having it easy to advertise across Facebook and Instagram is a win for the industry, it's still not enough to drive mass adoption. However, it is a step forward for the industry, and such big (or small) advancements are key to the mass adoption of cryptocurrency. Of course, one of the major issues that hold crypto from mass adoption is risks.
The Future of Crypto Advertising on Facebook and Instagram
Meta loves cryptocurrency, and the company is still actively involved in the space despite the regulatory hurdles that stopped its ambitious Libra project (before it morphed into Diem).
But, it has not been so friendly to crypto advertisers since 2018. However, the latest policy change on crypto ads makes it easy for companies to advertise, and we can only hope that things will continue to get better.
Meta says it "may refine these rules over time" as the industry evolves. One of the changes it plans to implement is adding more supported licenses once they're available.